Cryptocurrencies’ prices have briefly leaps after President Donald Trump’s surprise announcement that he wants the US government to buy and hold a variety of digital assets in a strategic reserve fund, an announcement that highlights Trump’s growing attempts to use the volatile prices of cryptocurrencies as a barometer of his public support.
Trump declared on Sunday on social networks that his administration was trying to create a “cryptographic strategic reserve” which will include less known Cryptocurrencies XRP, Solana and Cardano. He then followed another article saying that his planned reserve would also include Bitcoin and Ether, the two most popular cryptocurrencies.
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The announcement helped cryptographic prices benefit from a brief rebound after recent sales. Bitcoin reached about $ 95,000 after diving below $ 80,000 last week. XRP, Solana and Cardano saw massive peaks in their prices after Trump’s announcement on Sunday.
But on Monday afternoon, the prices had fallen roughly where they were before Trump’s announcement. American shares also dropped sharply on Monday after Trump confirmed his intention to impose 25% of import prices in Canada and Mexico.
The government defenders who hold a cryptography reserve indicated would help to diversify the government’s assets and to cover themselves against financial risks. Critics say that the volatility of cryptocurrencies makes it a bad choice as a reserve ratio.
On the campaign track, Trump promised support for a stock of “strategic national bitcoin”, which would include bitcoin that the US government previously seized in law enforcement actions. The announcement on Sunday was the first time he pleaded for the government to have other types of cryptocurrencies.
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The inclusion of cryptocurrencies other than Bitcoin is likely to deal with a sustained repression among certain corners of the strongly divided cryptocurrency industry. Bitcoin is the oldest cryptocurrency and by far the most popular and represents more than half of the global market capitalization of cryptography.
Some of Trump’s main allies in the industry have expressed their surprise and a certain skepticism of Trump’s plan.
“Just Bitcoin would probably be the best option – a simplest and clearest story as a Gold successor,” said Brian Armstrong, CEO of the Coinbase EXCHANGE CRYPTO.
The White House did not immediately provide additional details, including the quantity of each type of cryptocurrency that Trump wanted the United States to hold, and how the government would act, and if it was favored, including other types of cryptocurrencies.
Eric Trump, the president’s son, said the prize peaks validated the recent advice he had made on social networks to fill up on cryptographic assets. “I hope I made someone’s life a little better,” he posted on social networks.
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The president presented himself as hero of the cryptographic industry, which, according to his announcement, had been the target of the “years of corrupt attacks by the Biden administration”. The cryptography industry felt unjustly targeted by Biden administration and spent heavily to help Trump win the elections. The first weeks of his administration saw several measures to stimulate crypto, including the end or break of the large -scale implementing measures of the Securities and Exchange Commission.
The cryptography prices climbed after Trump’s victory last year, and when the Bitcoin price crossed $ 100,000 in early December, Trump took the credit and posted “You are welcome !!!” on social networks.
But the prices have dropped since the inauguration of Trump and Trump has faced criticism, including allies from the cryptography industry, for helping to launch a piece of personal memes just before its entry into office which has since collapsed. The crash of the pieces even linked to the first lady Melania Trump and the Argentinian president Javier Milei, as well as a massive hack of a great cryptocurrency exchange which, according to the FBI, was carried out by North Korea, also attenuated enthusiasm for the crypto.
“Why is the crypto in the toilet if Trump is crypto-king?” Dave Portnoy, influencer and crypto, said last week on social networks.
In addition to his announcement on Sunday, Trump also recently announced that he would speak to industry leaders on Friday in a White House “cryptography summit”.
